Japanese and South Korean equities plunge following Friday’s 4.2% Nasdaq decline, while S&P 500 futures recover slightly.
The Nikkei 225 fell 3.5% in early trading, mirroring Friday’s 4.2% drop in the Nasdaq Composite as global markets react to US tech sector weakness. South Korea’s benchmark halted briefly after an 8.4% crash, though it later rebounded sharply.
S&P 500 futures initially opened 0.6% lower but trimmed losses to 0.2% after comments from US officials suggested progress in Middle East negotiations. Markets have repeatedly rallied on similar headlines in recent weeks despite skepticism over their durability.
Asia’s selloff reflects broader risk aversion, with semiconductor and memory stocks leading declines after a year of strong gains driven by FOMO and chip demand.